Cahya Mata Sarawak tumbles to 11-month low amid deputy chairman Abu Bekir's legal action

• Deputy chairman Datuk Seri Mahmud Abu Bekir Taib filed the suit at the High Court in Kuching.

KUALA LUMPUR (March 7): Cahya Mata Sarawak Bhd (KL:CMSB) shares fell to their 11-month low, after the group said its deputy chairman Datuk Seri Mahmud Abu Bekir Taib had filed a lawsuit against the group to inspect its accounts.

CMSB dropped as much as 8.17% or 8.5 sen to 95.5 sen on Friday, its lowest level since April 1, 2024. At 11am, the stock traded at 97 sen, down seven sen or 6.73%, with 8.05 million shares changing hands. At that price, CMSB had a market capitalisation of RM1.05 billion.  

On Thursday, Mahmud filed the suit at the High Court in Kuching, seeking an order for CMSB to produce and open an inspection into its accounts, as well as those of five subsidiaries: Cahya Mata Phosphates Industries Sdn Bhd, Cahya Mata Cement Sdn Bhd, Oiltools International Sdn Bhd, Cahya Mata Oiltools Sdn Bhd, and Cahya Mata Professionals Sdn Bhd.  

In a filing, CMSB stated that Mahmud had been informed that, due to short notice, an alternative date would be set for the inspection. However, he proceeded with the lawsuit before the board could determine a suitable time and place for the inspection.  

Mahmud has been on CMSB’s board since January 1995 as a group executive director, and later was re-designated as the deputy group chairman in May 2002. He also served as the interim group chairman from May to October 2018. In addition, he is the chairman of Sarawak Cable Bhd (KL:SCABLE).  

CMSB, which is seen as having direct exposure to Sarawak’s high economic growth potential through its cement, construction materials, and property and construction operations, reported a net profit of RM128.19 million for the financial year ended Dec 31, 2024 (FY2024), up 12% from RM114.44 million for FY2023, despite revenue staying flat at RM1.2 billion. 

This was attributed to its enhanced operational efficiencies across all core divisions, the company said earlier in accompanying its 4QFY2024 result release, while expecting improved performance in all its business segments on the back of projected economic growth and benefits from infrastructure projects, coupled with a stable business environment in 2025. 

Earlier this year, CMSB appointed two new independent non-executive directors: Datuk CP (R) Mohd Azman Ahmad Sapri, a former law enforcement professional with 38 years of service in the Royal Malaysian Police, and Datuk Mat Hassan Esa, who has 32 years of experience in asset management, spanning public and private investments under Permodalan Nasional Bhd.

Mohd Azman is a member of CMSB’s audit committee and nomination and remuneration committee, while Mat Hassan serves on the nomination and remuneration and risk committees.  

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